99 Cents Only to delay SEC filing

DanBurrows

NEW YORK (CBS.MW) -- Specialty retailer 99 Cents Only Stores has notified the Securities and Exchange Commission that it needs more time to file its official report on third-quarter results.

In a regulatory filing, 99 Cents Only Stores
NDN
gave no specific reason for the delay, except to say filing on time would cause "unreasonable effort or expense."

The retailer's stock dropped 73 cents, or 4.6 percent, to close at $15.20 Wednesday. Calls to Chief Financial Officer Andrew Farina were not returned.

In October, the company reported its third-quarter results to the public, but wants more time to formally file them with the SEC. The SEC filing subsequent to publicly released numbers usually is a perfunctory step.

But if the company fails to submit that filing on time, it can be troublesome. Companies often include additional information in those filings, known as 10 Q's, that may have an effect on stock pricing.

The company said in October that third-quarter profits plunged 61 percent to $4.7 million, or 7 cents a share, from $12.1 million, or 17 cents a share in the same period a year ago. Earnings were below the Thomson First Call consensus estimate of 8 cents a share.

Sales rose 13 percent to $238.9 million from $211.5 million, but also fell short of analysts' average forecast of $241.9 million. Same-store sales increased 0.5 percent.

Also in October, the discount retailer said it hired a new director of supply chain management, after problems at its overtaxed Los Angeles distribution center caused late deliveries and out-of-stock inventory problems at some stores.

This is the second time this year 99 Cents Only Stores has been forced to delay a quarterly filing. In February, the company said it received a comment letter from the SEC's corporate finance division over the accounting of its sale of Universal International in 2000.

The retailer said the matters raised by the SEC could impact results since 2000. As a result of the SEC inquiry, the company said it would delay the release of its fourth-quarter results.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.